Indonesian Political, Business & Finance News

Pertamina Sumbagut blocks suspected LPG subsidy adulteration depot

| Source: ANTARA_ID Translated from Indonesian | Regulation
Pertamina Sumbagut blocks suspected LPG subsidy adulteration depot
Image: ANTARA_ID

Padang (ANTARA) - Pertamina Patra Niaga Regional North Sumatra (Sumbagut) has blocked an LPG depot in Padang, West Sumatra, after findings of suspected subsidised gas adulteration practices.

“For the incident at that depot, we have now blocked it,” said Sales Area Manager (SAM) Retail West Sumatra of Pertamina Patra Niaga Regional Sumbagut, Fakhri Rizal Hasibuan, in Padang on Friday.

Not only that, after the blocking, Pertamina will subsequently establish a termination of business relations through the agent supplying gas to the depot proven to have engaged in adulteration practices.

The suspected adulteration practice was discovered by Pertamina after the West Sumatra Regional Police (Polda Sumbar) uncovered a case of alleged LPG adulteration carried out by one depot in Padang on Thursday (9/4).

Pertamina ensures that subsidised LPG is intended for eligible segments of society in accordance with Presidential Regulation No. 104 of 2007 and Presidential Regulation No. 38 of 2019.

The targets of subsidised gas beneficiaries include poor households, micro, small, and medium enterprises (MSMEs), target farmers, and target fishermen. Therefore, all forms of misuse, including adulteration practices, cannot be tolerated.

Currently, Pertamina in the area is processing the termination of business relations with the problematic depot. Subsequently, the agent will seek a new depot to ensure the subsidised LPG supply chain is not interrupted in that area.

“Pertamina will not tolerate any form of misuse of subsidised LPG and will continue to strengthen supervision and take firm action against parties proven to have committed violations,” he said.

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